Richards Bay Coal Terminal Begins a Year of Stabilization

1. New users on track to rail coal by the end of January
2. Exports approximately same as 2008 despite more challenges in 2009

Richards Bay Coal Terminal (RBCT) exported 61.14 million tons of coal in 2009 under challenging conditions. In the previous year RBCT exported 61.7 million tons.

Raymond Chirwa, Chief Executive of Richards Bay Coal Terminal (RBCT), said: “We faced critical business challenges last year, compared to a smoother 2008. These related to integration problems with the new Terminal Control System. This year however heralds the start of the stabilization process and we are confident that we will complete the Phase V expansion project in April.”

Transnet Freight Rail (TFR) only delivered 61 million tons last year. By utilizing its stockpile buffer, RBCT achieved 0.14 million tons more than TFR did.

“TFR’s non-performance in meeting our rail capacity’s requirements is now the only constraint in the coal value chain,” Chirwa says. TFR has admitted it has not delivered on its mandate and has drawn in additional technical resources to ramp up capacity.

“A collaborative effort is what will help South Africa regain and retain its leadership position in global coal export markets,” Chirwa says.

RBCT expects to incorporate all new users after they have signed contracts while a 91 million ton terminal will be rolled out at the beginning of Q2 2010, when the expansion project is commissioned. 9 million tons per annum of expansion capacity has been offered to 9 new shareholders and commercial users with black economic empowerment priority.

Mbokondo, Umcebo, Exxaro and South African Coal Mining Holdings (SACMH) concluded agreements with RBCT at the end of last year and are ready to rail coal. Worldwide Coal Carolina, Mmakau, Arm Coal, Tumelo and South Dunes Coal Terminal agreements are in the final stages of negotiation.

“I’m confident that all new exporters will join the existing shareholders in exporting coal as early as the end of this month. This development will open up the world stage to emerging coal exporters and we are proud to part of this history,” says Chirwa.

RBCT will reclaim its single largest export coal terminal status in the world at the beginning of Q2 2010.

FOR FURTHER INFORMATION PLEASE CONTACT:
Miss Zama Luthuli
Corporate Affairs Manager
Richards Bay Coal Terminal Company Limited
Tel: 035 904 4045
Cell: 083 399 3111
Email : zluthuli@rbct.co.za